March shows downturn in EU car market, highlighting decline in electric vehicle sales

March’s new car registration figures from the European Automobile Manufacturers’ Association (ACEA) have shown a decline following growth in the first two months of 2024. Across the EU, registrations declined by -5.2 per cent, this included major markets like Germany (-6.2 per cent), Spain (-4.7 per cent), Italy (-3.7 per cent), and France (-1.5 per cent). However, for Q1, car registrations increased by 4.4 per cent in the EU, with solid growth in Italy (+5.7 per cent), France (+5.7 per cent), Germany (+4.2 per cent), and Spain (+3.1 per cent).

“It is unfortunate to see that the final month of the quarter has not continued the growth experienced in January and February, with March seeing a contraction in the EU car market. This downturn, marked by a -5.2 per cent contraction in new car registrations, underscores the challenging conditions facing the industry at this time of political uncertainty” said Sue Robinson, chief executive of the UK’s National Franchised Dealers Association (NFDA).

There was a shift in power sources, with battery-electric car registrations declining by -11.3 per cent in March, though Belgium (+23.8 per cent) and France (+10.9 per cent) saw increases. This -11.3 per cent decline resulted in a decrease in market share from 13.9 per cent to 13 per cent. Hybrid-electric cars rose by 12.6 per cent, with France (+29.6 per cent) and Italy (+8.3 per cent) showing significant growth. Plug-in hybrid registrations fell by -6.5 per cent, indicating a shift in consumer trends towards hybrid electric.

Petrol cars were significantly impacted, with sales staunchly dropping by -10.2 per cent. Notable reductions were seen in France (-17.7 per cent), Spain (-10.1 per cent), and Germany (-3.4 per cent) for both petrol and diesel, while Italy saw growth in petrol sales but a decline in diesel.

Diesel saw an even steeper decline of -18.5 per cent in March. The largest markets, again, saw substantial declines, with France recording a -32.2 per cent contraction, Spain a -38 per cent, Italy a -27.6 per cent, and Germany a much more modest -0.5 per cent. The significant downturn in ICE sales far outweighs that of its electric counterparts.

Sue Robinson concluded: “Ultimately, March’s performance fell short of expectations, especially compared to the successes of January and February and the UK car market’s growth.

“It is disappointing to see EV sales have witnessed a significant decline. This is especially true considering the EU Parliament recently passed the Euro 7 bill. With auto sector CEO’s calling for EU leaders to create the conditions for EV competitiveness and market demand it seems that March signals a period of tumult for the EV market despite most major markets being ahead of the UK in offering price incentives for EV registrations.

“As 2024 continues and our industry further evolves alongside emerging technologies and regulations, the NFDA remains committed to fostering advancement within the automotive sector.”